• Guided by:– Prof. (Dr.) P.K.Priyan

• Prepared by:– Abhishek Shah (14F02)– Nishith Shah (14M22)– Pratik Sonaiya (14F26)– Vidhi Shah (14F72)

HOTEL INDUSTRY

Outline

• Introduction• Classification• Growth & Evolution• Demand Analysis• Marketing Strategy Analysis• Financial Analysis• Industry Analysis• Conclusion• Bibliography

INTRODUCTION OF HOTEL INDUSTRY• One of the fastest growing sectors of the economy is the hotel

industry. The hotel industry alone is a multi-billion dollar and growing enterprise. It is exciting, never boring and offer unlimited opportunities. The hotel industry is diverse enough for people to work in different areas of interest and still be employed within the hotel industry.

• Hotels in India have supply of 200,000 rooms. According to the tourism ministry, 4.4 million tourists visited India last year and at current trend, demand will soar to 10 million in 2015 to accommodate 350 million domestic travelers whereas there is shortage of 100,000 rooms in India.

• The hotel industry has contributed between 1.2% and 1.5% of GDP over the last seven to eight years.

CLASSIFICATION OF HOTELS

Classification of Hotels

Market Segment

Property type

SizeLevel of Services

Ownership

Based on Operational Criteria

Classification of Hotel

Star Category

Hotel

Heritage Hotel

Licensed units

Classified by Ministry of tourism

GROWTH & EVOLUTION

• The tourism and hospitality sector is among the top 15 sectors in India to attract the highest foreign direct investment (FDI). During the period April 2000-May 2015, this sector attracted around US$ 8.1 billion of FDI, according to the data released by Department of Industrial Policy and Promotion (DIPP).

• As per some published reports, hospitality sector of India is expecting to witness better infrastructure growth.

INNOVATION POTENTIAL

• Flotel

• Ecotel

• Service apartment

DEMAND ANALYSIS

• India’s hotel industry is experiencing an unprecedented boom, driven by increasing no. of businesses & tourist arrivals.

• "The outlook for the Indian Hotel Industry over the next 12-18 months is expected to remain subdued given the gap between supply and demand. However, measures by the government to drive tourism through several strong policy initiatives could bring in stronger demand, supporting the industry over the next 12-18 months," ICRA said in a report.

• Domestic demand has showcased a growth of over 10%, driven by both business and leisure travellers during 2014-15. However, falling global economic sentiments have affected inbound travel and with a booking window of 8-12 months for western leisure travel, the impact is expected to be felt in 2015-16 as well.

MARKET PENETRATION

For e.g, Research of our competitive Market Set of 1,000 rooms revealed an average aggregate Market Occupancy of 70%.

Total Market Set of rooms = 1,000

Market Occupancy = 70%

For 365 days

Total Rooms Occupied of the Market Set = 255,500 (1000*70%*365)

A particular hotel’s Market Share = 20%

Hotel’s goal of Rooms Occupied = 51,100 (255500*20%)

CURRENT TRENDS IN HOTEL INDUSTRY

• The Indian hotel industry has seen a significant growth in room inventory across categories from upscale luxury to limited services and, boutique and budget hotels.

• With the continued growth in India's GDP, improvement in the per capita income, and increased aspirational spending, the Indian hotel sector is expected to grow faster than most countries around the world.

• The Indian hotel industry is seeing huge spurt of foreign investment and international brands entering the foray. Most major international hotel brands such as Starwood, Hilton, Marriott, Hyatt and Accor already have a growing presence in India.

• ITC Hotels also have projected its plan to open 25 new hotels under the Fortune brand over the course of next 12-18 months.

MARKETING MIX

Marketing Mix

Product

Physical Evidence

PricePlace

Promotion

4 I’s

Inventory Inconsistency

IntangibilityInseparability

Continue..

• CRM used in hotel industry

• Social media marketing

MAJOR PLAYERS IN HOTEL INDUSTRY

The Indian Hotels

Company Limited (IHCL)

The Asian Hotels Limited

Mahindra Holidays &

Resorts

Hotel Leela Venture

Oberoi Group ITC Hotels

Indian Tourism

Development Corporation

(ITDC)

FINANCIAL ANALYSIS

20152014

20132012

20112010

20092008

20072006

-20

-15

-10

-5

0

5

10

15

20

Net Profit Margin

Net Profit Margin

2015 2014 2013 2012 2011 2010 2009 2008 2007 20060

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

Debt - equity Ratio

Debt - equity Ratio

Continue..

2015 2014 2013 2012 2011 2010 2009 2008 2007 2006

-15

-10

-5

0

5

10

15

ROE

ROE

2015 2014 2013 2012 2011 2010 2009 2008 2007 20060

5

10

15

20

25

ROI

ROI

INDUSTRY ANALYSIS• It consists of three major analysis.1) PESTEL analysis2) SWOT analysis3) Porter’s Five-Force Analysis

CONCLUSION

• It can be concluded that Indian hotel industry was going through bad period due to global and domestic factors. But it is expected that it will grow by 10-12% in next few years. There is lot of scope for the hotels to innovate in their services and facilities to be provided for high customer satisfaction.

• The government policies and schemes will be driver for changes in the hotel industry in India. The hotel industry contributing to the national income is in such a manner where economic implication of hotel industry and hospitality sector can be seen very clearly from each angle and aspects.

Continue..

• Marketing and management control of a particular service provider in a particular field is a too difficult when it comes in to practice but Indian hotel industry has proved that they have been using all tools of marketing to promote for the sake of progress of hospitality sector. Use of social media and internet are key factors for hotels in their marketing activities.

• There is a wide scope for the development and expansion of the Hotel Industry in the country like India where there is interdependent industry like hospitality and tourism industry are supporting in so many ways and thereby we hope for the bright future of the Hotel Industry in India.

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THANK YOU